Volkswagen has seemingly pulled a Rabbit out of its hat and turned it into a Golf.

That bit of slight of hand has revealed an all new hatchback and at the same time restores the Golf (German for gulf) name as the company's cornerstone brand in North America.

The short-lived Rabbit revival - a name originally used only in North America beginning in the mid-1970s to 1984 - that began for the 2007 model year likely created some confusion in the minds of car shoppers despite the proliferation of cutesy TV commercials that showed the cars proliferating like, well, rabbits.

So it's back to the future for the Golf that, along with its sportier GTI alter-ego, have undergone significant styling and mechanical changes for 2010. As well, a wagon version of the Golf has been added for the Canadian market, replacing the Jetta wagon. Although all three are recognizable, VW's design team has crafted a cleaner, more attractive grille and also smoothed out the bumper and lower air intake. The automaker says that the refresh represents "the new face of the Volkswagen brand." And what an attractive face it is.

Other physical adjustments include a hatch-mounted spoiler and new taillights.

The GTI features two horizontal red bands that front a blacked-out egg-crate-style grille, making it easy to spot in a crowd or in your rear-view mirror.

Updates to the Golf have also been extended to the passenger area. A new dashboard and control panel greets the driver along with a revised centre console and trim accents. Additionally, both the standard cloth- and available leather-covered (on the GTI) seats have been upgraded.

Getting under way involves either the carryover 170-horsepower 2.5-litre five-cylinder engine, or the optional 140-horsepower 2.0-litre four-cylinder turbo-diesel (TDI). The latter marks the return of diesel power engines that ended with the 100-horse unit that was last offered in the 2006 Golf. Compared to the gas engine, the TDI is claimed to emit 25-per-cent less greenhouse gas (such as carbon dioxide) while delivering 30-per-cent better fuel economy.

Meanwhile, the performance-driven GTI steps up with a 200-horsepower 2.0-litre turbocharged four-cylinder matched to a six-speed manual transmission or an optional a six-speed Direct Shift Gearbox (DSG) that delivers virtually instantaneous gear selection through steering-wheel paddle shifters without the need for a clutch pedal. Two-door gas-powered Golfs come with a five-speed manual transmission, while four-door versions use a six-speed automatic. The TDI, which features the same six-speed manual transmission as the GTI, can also be upgraded to the DSG, which demonstrates that this diesel has more than fuel economy on its mind, although it's around a full second slower to 100 km-h than the base five cylinder.